Saturday, February 27, 2016

The Catastrophe of Ireland

It’s a catastrophe, even though some people are crowing about the admittedly large real GDP growth rates in 2014 and 2015 (at 5.2% and about 6.9% respectively). In the media, we find breathless stories about Ireland being the “fastest growing economy in Europe” as if Ireland’s brutal austerity is a viable model for the rest of Europe.

However, actual Irish real GDP still stands below its 2007/2008 peak, even after 8 years. The depth of Ireland’s collapse was on the scale of a depression (that is, where real output fell by 10% or more) and if it takes 6 years before some modest growth returns, you have to ask: how the bloody hell does anyone think this is a success story?